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Govt's Disinvestment Drive Surges Past ₹15,000 Crore
16 Jun
Summary
- Government plans to sell up to 5% stake in GIC with a floor price.
- Disinvestment collections are set to surpass ₹15,000 crore in one month.
- Current pace suggests exceeding the ₹80,000 crore annual disinvestment target.
The Indian government's disinvestment efforts are accelerating, with an upcoming Offer for Sale (OFS) in the General Insurance Corporation of India (GIC). This move signifies a significant step in the ongoing drive to raise capital through asset sales.
The proposed sale involves up to 5% of GIC's equity, with a floor price set at ₹352 per share, representing an 8.5% discount to the previous day's closing price. The base offer includes 2% of the company's outstanding equity, with an option to sell an additional 3%.
This GIC OFS follows a series of similar stake sales in Coal India, Central Bank of India, NLC India, and NHPC within the past month. These transactions have collectively raised ₹13,389 crore. If the full 5% stake in GIC is sold, an additional ₹3,087 crore could be generated, bringing the total close to ₹16,500 crore.
Cumulatively, including monetization receipts, the total funds raised have reached ₹21,732 crore, which is 27% of the full-year target of ₹80,000 crore. Sources suggest that at the current rate, the government is highly likely to surpass its ambitious target for the current financial year.
